Adams looking to finalize purchase May 1
The Crookston Housing & Economic Development Authority (CHEDA) Board of Directors has unanimously approved a $50,000 loan to Dean and Sheryl Adams, who as “Adams Family Hardware” have purchased Lerum Hardware/True Value Hardware on North Main in downtown Crookston.
The store’s longtime owner, Greg “Fuji” Lerum, passed away from cancer in January.
“(Lerum) and I talked about this for the last four years,” Dean Adams said. “We’re happy to continue this business in Crookston.”
The $50,000 loan will be paid off over 10 years at 4.5% interest. The Adams received a $100,000 loan from their primary lender, CHEDA Executive Director Craig Hoiseth said, and the $50,000 CHEDA loan is serving as gap financing.
The Adams are purchasing the business but not the building, which is owned by Scott Maves. Hoiseth said there are some matters involving the building’s roof and the storefront itself that will be addressed in the coming months.
CHEDA’s loan fund is currently depleted. The $50,000 for the Adams is coming from a CD CHEDA is cashing in that totals approximately $250,000. Hoiseth said CHEDA is able to cash the CD without paying a penalty.
The Adams are scheduled to close on the purchase May 1.
Dean Adams owns Adams Heating & Cooling and Sheryl Adams owns Cutting Edge hair salon, located on the same block as True Value. The couple and their kids have also purchased several residential properties and, through CHEDA’s housing rehab program, received loans from the program to renovate and resell or rent the properties. Hoiseth said they have a “flawless” track record when it comes to paying back their loans.
The Adams are planning to add inventory to the hardware store, including more plumbing and electrical supplies. Dean Adams said they’re working with True Value representatives on a partial redesign of the store. The loan narrative also indicates they will add “various gift-type items” to provide a “unique shopping experience.”